QUESTION THREE $[25]$

Bongani Manufacturing is a well$-$established player in the automotive components industry, specializing in the production of engine parts and accessories. With a history of supplying top$-$quality components to major automobile manufacturers, Bongani Manufacturing is exploring strategic options to enhance its competitive position and capture more value within the supply chain. Currently Bongani Manufacturing faces several challenges in its current position:

$$ Reliance on External Suppliers: The company depends heavily on external suppliers for critical raw materials and components.

$$ Cost Pressures: Fluctuating prices of raw materials and components impact the company's profitability.

$$ Supply Chain Risks: Vulnerability to disruptions in the supply chain, such as delays or shortages.

$$ Limited Control over Quality: Variances in quality standards among suppliers affect the consistency of Bongani Manufacturing's products.

Bongani Manufacturing would like to:

$1.$ Reduce dependency on external suppliers and mitigate supply chain risks.

$2.$ Improve cost control and reduce exposure to volatile raw material prices.

$3.$ Enhance product quality and consistency by exerting greater control over the manufacturing process.

$4.$ Explore opportunities to capture more value within the supply chain.

$5.$ Strengthen competitiveness and market position in the automotive components industry.

Provide an opinion on how Bongani Manufacturing could pursue a strategy of vertical integration $($both backward and forward$)$ to address its challenges and achieve its objectives.